Stable money measurement, Financial Management

Assignment Help:

Stable Money Measurement

A business entity enters within numerous transactions in which affect the business in varied ways.  Therefore recording, classification and summarization of these heterogeneous business transactions are measured and expressed in terms of general unit of measurement. For accounting reasons we suppose that money serves as a common denomination for expressing business transactions.  The implication of this concept is in which those transactions and events that might affect the business but are not measurable in money terms are not recorded in the books of account.

The second aspect of this concept is in which the money gives a standard of exchangeability and implicit assumption is in which the changes in purchasing power of the monetary unit are not of enough importance as to need adjustments. The application of the second aspect is in which all the assets in the balance sheet are recorded at their historical cost not at the current price. The changes in the purchasing power of monetary units are because of the inflation, but for accounting purpose it are ignored; therefore the concept is called as Stable Money Measurement Concept.


Related Discussions:- Stable money measurement

Compounding technique for calculating time value of money, COMPOUNDING TECH...

COMPOUNDING TECHNIQUE is the method of calculating the future values of cash flows and involves calculating compound interest.  Under this process, interest is compounded when the

Financial and management accounting, the salaries paid in 2004 is rs 500000...

the salaries paid in 2004 is rs 500000 outstanding is rs 20000 salaries paid in advance for 2004 is rs 30000 what is the actual salary expenditure for 2004 which accounting princip

Future value, Future V alue The value of an investment is based...

Future V alue The value of an investment is based on the rate of interest paid at set time periods and at some point in the future. Future values incorporate both the i

Yield spread strategies, Bond market can be classified into various s...

Bond market can be classified into various segments based on the nature of characteristics such as type of issuer (central bank, corporate etc.), credit risk (ris

International finance problem, International Finance Problem Analyze th...

International Finance Problem Analyze the attached case, along the lines indicated by the Assignment questions listed at the end of the case.  Since you will have plenty of tim

Stock Valuation, You have just purchased a stock that would pay the dividen...

You have just purchased a stock that would pay the dividends of the first four years as D1 = $0.65, D2 = $0.74, D3 = $0.79, D4 = $0.84. You were also told that the dividends would

NET INCOME APPROACH.., You are required to compute the value of both the fi...

You are required to compute the value of both the firms using Net Income approach.

What do you mean by letter of credit, Q. What do you mean by Letter of Cred...

Q. What do you mean by Letter of Credit? A letter of credit is an arrangement whereby a bank helps its customer to obtain credit from its (customer's) suppliers. When a bank op

Macro-economic analysis, Macro-Economic Analysis Measuring the Level o...

Macro-Economic Analysis Measuring the Level of Economic Activity Gross National Product (GNP) and the Gross Domestic Product (GDP) are the two most widely used aggregates

Budget setting styles, Advantages and disadvantage of pacipatory style of b...

Advantages and disadvantage of pacipatory style of budgeting

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd